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How long before TT fixes the South Carolina unemployment exemption? Currently NOT CALCULATING CORRECTLY.

The South Carolina Governor recently exempted the unemployment taxes to be inline with the federal exemptions. The TT software is not calculating the exemption for South Carolina as of the 6/8/2021 update.

3 Replies

How long before TT fixes the South Carolina unemployment exemption? Currently NOT CALCULATING CORRECTLY.

Do you have a web link showing that SC now conforms with the federal law and excludes unemployment compensation from being taxed?

 

Go to this South Carolina Department of Revenue website - https://dor.sc.gov/tax/individual-income/faq

 

Does South Carolina tax unemployment compensation?

Unemployment compensation, taxed on your federal return, is taxable to South Carolina if it was paid by South Carolina or received while a resident of South Carolina.

How long before TT fixes the South Carolina unemployment exemption? Currently NOT CALCULATING CORRECTLY.

But also...there is this follow-up from SC DOR......   Hard to know when TTX will get it fixed...but it isn't a light-switch change.   Should be ready in the next few weeks.....but that's just a wild guess:

 

SCDOR ISSUES GUIDANCE ON HOW TO AMEND YOUR TAX RETURN TO EXCLUDE UNEMPLOYMENT BENEFITS

______________________________

OF course whether you need to "Amend" SC or not will depend on whether you have actually filed your Federal tax return or not yet.   TTX will need to fix their SC forms and filings for both situations.   So all you can do is wait, keep checking for updates every Friday.  (Because TTX usually only updates software on Wed or Thursday nights)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

How long before TT fixes the South Carolina unemployment exemption? Currently NOT CALCULATING CORRECTLY.

Yes, I have read the SC DOR info on how to amend a tax return to get the new exemption. However, TT software will not allow the user to edit the unemployment out of the state return or even change the amount to $0 added back from federal income. The federal return re-calculates correctly. The SC state return recalculates based on the changes to federal income but NOT the changes to the state unemployment exemption. I prefer to make all changes in TT to keep my records for future returns.

 

 

 

https://dor.sc.gov/communications/scdor-issues-guidance-on-how-to-amend-your-tax-return-to-exclude-u...

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